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Departmental Financial Performance (cont.)

Notes to and forming part of the Financial Statements

1.1 Expenses (Cont.)

2019

2018

$'000

$'000

1.1C: Write-Down and Impairment of Assets

Write-down of property, plant and equipment

45

1,506

Write-down of intangibles

36

-

Total write-down and impairment of assets

81

1,506

1.2 Own-Source Revenue and Gains

2019

2018

$'000

$'000

Own-Source Revenue

1.2A: Sale of Goods and Rendering of Services

Construction works

1

727

1,847

Rendering of services

534

393

Sale of goods

2

-

Total sale of goods and rendering of services

1,263

2,240

Notes:

1. Revenues and Expenses Relating to Assets Under Construction for Third Parties

Reciprocal Funding

Where funding for construction of an asset is provided by a related Commonwealth entity or an external third party who takes control of the finished asset, the transaction is reciprocal in nature. The NCA recognises departmental revenue and expense in accordance with AASB 111 Construction Contracts using the percentage of completion method. Contract revenue is matched to contract expense incurred in reaching the stage of completion. Unexpended funding remains as a payable (refer Note 3.3B) on the departmental statement of financial position at the end of the reporting period in accordance with AASB 1004 Contributions.

Non-reciprocal Funding

Where the NCA retains control of the asset at completion and funding is received from a party other than a Commonwealth entity, the transaction is non-reciprocal. The NCA recognises the full contribution as departmental revenue in the year of receipt in accordance with AASB 1004 Contributions and recognises departmental expenses as the asset is constructed in accordance with AASB 111 Construction Contracts.

Accounting Policy

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the NCA retains no managerial involvement or effective control over the goods.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.